Christmas might be a time which pinches the purse strings but shoppers are being warned not to turn to illegal loan sharks to help fund their festivities.

Trading Standards is advising people to be wary of lenders offering deals which seem too good to be true, particularly in the run-up to Christmas when people are looking for extra money to buy gifts.

A survey published by social and economic researcher Policis showed that 20 per cent of victims who were conned by loan sharks said the reason for taking out the loan was to cover Christmas costs.

Wokingham Borough Council’s Trading Standards officers said illegal lending was not as much of a problem in Wokingham as other areas, but advised people to remain vigilant as loan sharks can be threatening or intimidating to victims.

Paul Fenner, Trading Standards officer at Wokingham Borough Council, said: “As far as I’m aware money-lending is not so much a problem in this area, but if it was going on we would be interested because they would need to have a licence under the Consumer Credit Act.

“If they do not have one, like some of these loan sharks, then of course we would tell people not to deal with them, not only because they have not got a licence but because their rate of interest would be high and situations can go from bad to worse.

“Some times they can be nasty types as well if people do not make their repayments.”

Typical traits of an illegal lender are that they will offer little or no paperwork, refuse to tell the borrower how much they still owe, increase the debt or add additional amounts, take items as security and resort to violence to enforce the loan.

The illegal money-lending teams from Trading Standards have helped more than 16,000 victims by writing off more than £25 million worth of illegal debt and confiscating £2.5 million in cash nationally.

The teams have also secured almost 80 years worth of prison sentences for illegal money lending and related offences which have included blackmail, threatening behaviour, intimidation, violence and threats of rape.

Trading Standards South East also warned people that illegal lenders often prey on the vulnerable and those who would struggle to access mainstream credit.

Tony Quigley, head of Trading Standards South East’s illegal money-lending team, said: “Illegal lenders are a scourge on our communities leaving people living in fear and misery. They prey on vulnerable people charging often exorbitant rates of interest and resorting to extreme methods to enforce their debts.

“At Christmas in particular we would like to make clear that illegal lenders are not a community service and should never be used, not even as a last resort.”

- Have you been approached by, or used, an illegal loan sharks? Call Caroline Cook on (0118) 918 3030.